Analyzing NYSE:MSM's Dividend Potential.

Unearth the potential of MSC INDUSTRIAL DIRECT CO-A (NYSE:MSM) as a dividend stock recommended by our stock screening tool. NYSE:MSM maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

ChartMill's Evaluation of Dividend

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:MSM has been awarded a 7 for its dividend quality:

• With a Yearly Dividend Yield of 4.09%, MSM is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 1.75, MSM pays a better dividend. On top of this MSM pays more dividend than 95.83% of the companies listed in the same industry.
• MSM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
• MSM has paid a dividend for at least 10 years, which is a reliable track record.
• MSM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for NYSE:MSM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MSM, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 5.05 indicates that MSM is not in any danger for bankruptcy at the moment.
• MSM's Altman-Z score of 5.05 is amongst the best of the industry. MSM outperforms 85.42% of its industry peers.
• MSM has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
• The Debt to FCF ratio of MSM (1.63) is better than 77.08% of its industry peers.
• A Debt/Equity ratio of 0.20 indicates that MSM is not too dependend on debt financing.
• MSM has a better Debt to Equity ratio (0.20) than 68.75% of its industry peers.

Evaluating Profitability: NYSE:MSM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MSM was assigned a score of 7 for profitability:

• Looking at the Return On Assets, with a value of 10.50%, MSM belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
• MSM has a Return On Equity of 18.58%. This is in the better half of the industry: MSM outperforms 66.67% of its industry peers.
• The Return On Invested Capital of MSM (16.39%) is better than 89.58% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for MSM is significantly above the industry average of 9.74%.
• MSM's Profit Margin of 6.77% is fine compared to the rest of the industry. MSM outperforms 70.83% of its industry peers.
• MSM has a better Operating Margin (10.63%) than 66.67% of its industry peers.
• MSM's Gross Margin of 41.16% is fine compared to the rest of the industry. MSM outperforms 72.92% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of MSM contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.